International travel is already expensive: pricey airfares; costly hotels; rental cars, rail passes, and taxis; and exchange rates that continually bounce up and down. When you’re traveling, you don’t need the added shock of coming home after a long trip only to see hundreds of dollars worth of fees on your credit card and bank statements.

But that’s just the type of thing that can happen to Americans who use credit cards and make ATM withdrawals when traveling abroad. Banks and credit card issuers often charge currency-conversion fees of up to 3 percent for each transaction, and banks can charge steep fees for ATM withdrawals in foreign countries.

2-for-1 Transaction Fees on Credit Cards and ATM Cards

Credit cards typically incur two per-transaction fees in foreign countries. The first is a 1-percent transaction fee that card issuers like Visa and MasterCard charge to convert foreign currency to U.S. dollars. The second, a completely arbitrary usage fee charged by some banks that issue credit cards, can be up to 2 percent of each transaction.

“They’re charging an extra 2 percent for absolutely no reason whatever, just because they believe they can,” said Gary Steiger, who runs the website Free Frequent Flyer Miles, which tracks and analyzes programs and offers from banks and credit card issuers.

ATM cards also typically incur two fees: a withdrawal fee as high as $5, plus an international transaction fee commonly ranging anywhere from 1 to 3 percent or $10, whichever is greater.

Travelers Have Options When It Comes to Paying Fees

Although fees from using credit cards and ATMs abroad can be steep, it’s possible to decrease or, in some cases, even eliminate them.

Travelers can avoid a credit card’s arbitrary 2-percent usage fee if you plan ahead and get a fee-free card prior to going on vacation. Some of these fee-free cards go even further and don’t charge the 1-percent transaction fee for currency conversions.

You can also minimize or even eliminate fees from ATM withdrawals by using an ATM card from certain U.S. banks at an international partner bank’s ATM kiosk.

Best and Worst Credit Cards for International Travel

Worst: Bank of America, Chase, and Citi all charge 3 percent in foreign transaction fees; American Express charges 2.7 percent; and Discover charges 2 percent, though it isn’t as widely accepted in other countries.

Best: USAA World MasterCard and American Express cards from Fidelity charge only 1 percent for foreign transactions.

Best and Worst ATM Cards for International Travel

Worst: Bank of America charges a $5 withdrawal fee (waived for ATM withdrawals at banks participating in the Global ATM Alliance) plus a 1- to 3-percent international transaction fee; Chase adds on a $3 withdrawal fee for non-Chase withdrawals, plus a 3-percent conversion fee; and Citi assesses a 3-percent withdrawal fee (after conversion to U.S. dollars), plus a $1.50 transaction fee.

Best: Bank of Internet, Charles Schwab, and American Bank don’t charge any fees for ATM withdrawals at foreign banks.

Tips for Using Credit Cards and ATM Cards Outside the U.S.

• When signing up for a lower-fee credit card for international travel, beware of some cards that may make up for lower fees with higher exchange rates.
• Avoid using your credit card for cash advances at ATMs. The interest rate on the advance can be as high as 25 percent.
• Take a backup credit card with you. There’s not a single card that’s accepted everywhere.
• Notify your credit card issuer that you’re traveling abroad. Charges in foreign countries may raise security red flags with your card issuer, and a freeze could be placed on your account.
• Make a list of your banks’ international phone numbers, and take them with you wherever you go.
• Be wary of foreign purchases at home. Card issuers have changed the definition of a foreign transaction to include those made or processed outside the U.S. (even if you make them from your computer at home), and you could see fees for online purchases, for example, if the merchant is in another country.

 

Popularity: 4% [?]

Credit cards can be useful tools for making big purchases without carrying around a lot of cash and can help you out in tough spots like financial emergencies. However, they can also put you in a tough spot if you’re not an informed user and can become difficult barriers to a good credit score if you don’t know how to play the credit card game.

But there are four smart things you can do to increase your awareness, protect yourself and your credit score, and position yourself to take fuller advantage of the benefits that wise credit card use can provide.

1. Open mail and e-mail from credit card companies immediately.

The Credit CARD Act of 2009 requires credit card companies to send out notices at least 45 days in advance of making any significant change in the terms of your account, including things like interest-rate hikes or increases to late payment fees.

Paying attention to communications from your credit card companies allows you to opt out of any changes you disagree with. Unfortunately, opting out typically means choosing to cancel the credit card account and pay off any balance under the account’s existing terms, usually within five years — which may not be a bad thing if you’re staring down the barrel of a 10-percent interest-rate hike.

2. Use inactive credit card accounts once every three months.

Credit card issuers don’t like never- or rarely-used credit cards because they represent zero profit. Check with your credit card company or read your account terms because card issuers will close dormant credit card accounts or issue inactivity fees. Citi, for example, charges annual fees of $30 to $90 for some credit card accounts if you don’t spend enough during the year.

But closing a zero-balance account if you don’t use it may not be a good choice either. Among other consequences, closing a credit card account will cause a jump in your debt-to-credit limit ratio that could cause your credit score to nosedive — at least temporarily, but long enough to potentially hurt terms for any loans you might be trying to get.

Instead, use your inactive credit card account once a quarter, even for small purchases like a tank of gas, and pay it off immediately when you get the statement. This occasional use will be good for the bank and good for you. Banks make from 1–3 percent on all credit card transactions, and paying off credit card accounts on time and in full is good for your credit rating.

3. Spend credit card reward points.

If you have a rewards credit card, you might want to consider redeeming your points as soon as you can. Credit card companies are looking for ways to cut expenses in this tight economy, and because they typically reserve the right to change reward program details at any time, some are cutting back rewards programs or making it more difficult to spend rewards points.

For example, Citi has changed its ThankYou Network program and imposed an expiration date on points, while Chase Freedom cardholders have lost control over which spending categories get the 3-percent cash-back rate.

Check with your credit card company, and stay on top of your rewards programs. You may be better off redeeming rewards before your credit card issuers change the reward terms.

4. Beware of over-limit protection offers.

Over-limit protection for credit card purchases can seem like a good idea. But what card issuers mean by is allowing you to make bad decisions and spend over your limit, which almost always incurs a fee. Capitol One, for example, charges $29 per over-limit transaction for the “protection” service.

With the passage of the Credit CARD Act, credit card companies can no longer charge you over-limit fees for purchases that exceed your account’s limit unless you opt into an over-limit protection program. Don’t opt in. Without your opt-in, your credit card company will just decline your transaction when you don’t have enough credit left to spend, which actually does more to protect you and your credit score than allowing you to spend more than you should.

Popularity: 1% [?]

There are a lot of coupon-clipping websites that offer to help consumers save a little here and there off online purchases. It’s one of the things that makes the Internet so consumer-friendly.

But there are so many coupon-clipping websites that offer the exact same service that determining which ones offer reliable deals and which ones don’t has become a difficult proposition. It’s one of the things that makes the Internet so consumer-unfriendly.

That’s why we’ve put together a list of five reliable coupon-clipping websites and explained their differences, because it’s what makes them different that makes them better.

Coupons.com

Coupons.com offers the same comprehensive coupon variety as Sunday newspapers with the convenience of a simple website layout that supports easy online browsing.

ZIP code–specific coupons are available, and coupons can be printed out for in-store use if you download and install the website’s coupon-printing software. One word of caution: Not all retailers accept online coupons, so check with stores first before using them.

CouponCabin.com

CouponCabin serves up fresh deals updated three times a day to keep the hottest discounts pouring in.

Sections for “most-used coupons” and “favorite deals” highlight the most popular ongoing deals in a staff-verified database of discounts. You can also subscribe to a weekly e-mail newsletter delivered on Mondays that highlights the latest coupons.

CouponMom.com

Coupon Mom’s simple site design, useful interface, and reliable coupons make saving quick and easy.

Online coupon codes, printout coupons, and free samples are among the types of deals you’ll find in a largely offer- and banner-free website design. The virtual coupon organizer aggregates reliable coupons from several sources, and you can subscribe to e-mails that alert you to deals from preferred merchants or even particular consumer goods you’re interested in.

RetailMeNot.com

At RetailMeNot, a dedicated user community separates good deals from bad and ensures incredible reliability.

Users indicate whether a coupon code worked for them and can add comments that let other users know when the last time a code was reported as working and if there were any issues with the code. Subscribers to an e-mail newsletter can get notifications of new codes for favorite retailers.

SmartSource.com

SmartSource’s wide selection of coupons combined with information on local store sales helps maximize consumer savings.

A wide selection of coupons and information on store sales can be customized by ZIP code and, as at Coupons.com, coupons can be printed out for in-store use with the website’s coupon-printing software. But the same caution applies: Not all retailers accept online coupons, so check with stores first before using them.

Popularity: 1% [?]

In this economy, everyone’s looking for another way to scrimp here and cut back there. When every penny counts, you want to make sure you’re saving as much as you can on basic household items and life’s bare necessities.

You’d be surprised at how much extra money you can keep in your account just by doing an audit of all your monthly expenses and making a few simple adjustments. Here are 10 tips to help you start saving more today in all areas of your life.

1. Ditch the paid checking.

Look for a bank that offers free checking with no minimum balance. You could save as much as $100 a year in fees if you’re currently paying for your checking account.

2. Don’t leave for the grocery store without coupons and a shopping list.

Avoid impulse shopping. Sticking to a list of must-haves and going in armed with coupons for the items on your list could cut your grocery bill in half. Check weekly newspaper ads, and sign up for alerts on Internet coupon sites to get notified of upcoming deals. Pay close attention to the price-per-ounce (or other unit) when comparison shopping: A similarly priced item may actually be much more expensive than you think because it’s smaller and you’re getting less for your money.

3. Resist the convenience of the convenience store.

It’s easy to pick up a gallon of milk, a loaf of bread, or that roll of paper towels you need when you stop to fill up at the gas station, but you’re paying for the convenience of that one-stop shopping: These stores often charge some of the highest prices for food and groceries. Avoid paying 50-percent markups. Find time to make your shopping runs, and get your groceries at the grocery store.

4. Audit your electricity use.

Ask your electric or gas company to check out your utility usage, or do it yourself. Depending on when your usage is heaviest, signing up for an off-hour rate program or a load management program could help you save hundreds of dollars a year on your electric bills.

5. Pore over your phone bills.

Take a fine-tooth comb to your cell and home phone bills to see if you’re paying for minutes and services you don’t need. Make adjustments so you can take advantage of plans that give you the best rate for times when you tend to use the most minutes. Consider getting rid of your landline altogether: Most cell phone providers offer monthly packages with lots of minutes and free roaming and long distance for less than what you’re paying to maintain both a cell phone and a landline.

6. Keep your car in shape.

A regular engine tune-up and something as simple as making sure your tires are properly inflated can help you save around $100 a year on gas.

7. Insist on fixed bids for repair services.

Only hire people and companies for home repairs who offer fixed-price bids for work. Home repair servicers often draw complaints, many times for trying to charge more than they initially quoted once they’re midway through the repairs.

8. Cut back on car insurance coverage.

To save money on your monthly premiums, unless you’re on the road a lot, consider raising the deductible on your collision and comprehensive coverage to at least $500 or, if you have an older car, getting rid of collision completely.

9. Get new homeowner’s and renter’s insurance quotes.

Call around or get quotes online from sites like Esurance and 2Insure4Less.com. You could find a lower rate with a new provider or use competitors’ lower quotes to negotiate a better rate with your current insurer. Check your state insurance department to make sure you aren’t paying more for insurance than typical rates in your area.

10. Shop around for the best prices on your prescriptions.

You may end up having to get different medications at different locations, but the savings can be huge. Consider trying mail-order pharmacies, and, if possible, always opt for generic versions of your prescriptions.

For even more money-saving ideas, check out the Federal Citizen Information Center’s 66 Ways to Save Money.

Popularity: 15% [?]

After you’ve packed away all your winter coats, scarves, and turtlenecks and dusted off all your t-shirts, shorts, and flip-flops for spring, keep that spring-cleaning momentum going and tackle your bills, your financial files, and your debts. By taking better hold of your finances, you may be able to find ways to save throughout the rest of the year. (more…)

Popularity: 6% [?]

With the unemployment rate now topping 8 percent and some 5.5 million Americans out of work, it’s likely that you know someone who’s been affected by the shrinking job market. In fact, a poll released last month by the Associated Press and GfK found that seven out of every 10 Americans have a friend or relative who’s recently lost a job because of the economy.

Although you probably can’t offer a job to every out-of-work person you know, what you can do is offer your skills, your resources, and your moral support to help your unemployed loved ones cope with the stress of being out of a job and help them get back in the working game.

1. Help them sign up for unemployment benefits.
   One of the most useful things you can do for friends who have recently lost their job is help them start collecting an unemployment check. If you can guide them through the process of applying for unemployment benefits, especially if you’ve been through the experience before yourself, you may be able to help them feel a little less overwhelmed by everything they’re facing.
2. Create a job-hunt tool kit.
   Give them a nice folder or notebook cover that they can take into interviews, along with a pocket notebook that they can use for brainstorming job ideas, jotting down interview answers, or keeping networking and contact information. For something a little more personal, include a gift card for a coffee shop or bookstore, or a subway or bus pass to get them to their interviews.
3. Offer a social networking tutorial.
   Help them set up a networking profile on Facebook, LinkedIn, and Naymz. Teach them how to create their own blog or website so that they can put up their portfolio, showcase their skills, and start promoting themselves online.
4. Donate your workspace.
   Your work or home office has all the tools your out-of-work friends and family need to search for a job — free Internet access, a computer, a printer, a fax machine, maybe even a scanner or copier, and a quiet, private space at your personal desk where they can focus on their job hunt.
5. Give them a break from the job search.
   Let them know that it’s impossible and, frankly, ineffective to spend the entire day looking for a job. Offer to treat them to lunch or coffee to get them out of the house. If they’re uncomfortable accepting a free meal, you can at least advise them to take time each day to do something they wouldn’t be able to do if they were at work — go for a walk outside, see a movie, or just take a nap.

Popularity: 8% [?]

Forget the mattress. The nation’s 8,000 credit unions, which currently offer lower interest rates on loans and higher returns on savings accounts than most commercial banks, may be the new safest place to stash your cash.

Credit unions have largely avoided the troubles of the commercial banking industry by sticking to the basics; they take in members’ deposits and lend back to them at reasonable rates, charging an average of 4.41 percent for a home-equity line of credit compared to the 4.77-percent rate charged by banks (“Safe Havens: Credit Unions Earn Some Interest,” The Wall Street Journal, March 15, 2009). And credit unions have produced, on average, 2.29-percent returns on one-year certificates of deposit, unlike the 1.74-percent returns banks currently pay their customers.

Not only have credit unions’ safe banking practices proved fruitful for their books — they held $575 billion in loans in 2008, up from $539 billion in 2007 — their financial security and customer service appeals have contributed to a significant jump in membership. In 2008, credit union membership rose to almost 90 million, up from 85 million in 2004.

“Community First [Credit Union] not only had the best rate,” said Stephen Birkelbach about his Florida credit union. “I was so impressed with the customer service and the up-front attitude I moved everything over to them.” Not only did Birkelbach switch over his personal and business accounts to Community First, he also used the credit union to refinance his mortgage at 4.25 percent in January and to finance his truck.

Of course credit unions haven’t been completely immune to the effects of the economy; 15 credit unions were liquidated last year and two credit unions closed their doors this year. And credit unions’ delinquency rates have doubled from 0.68 percent in 2006 to an estimated 1.45 percent this year due in large part to high foreclosure rates. But the average delinquency rate for banks, currently at 2.93 percent, is still more than a full percentage point higher than the delinquency numbers credit unions have seen.

Comparatively, credit unions are “solid,” says Karen Dorway, president and director of research for BauerFinancial, a firm that analyzes banks and credit unions.

What to Know Before You Switch

Credit unions’ services and operations aren’t much different from those at commercial banks:

• Membership requirements: You will most likely need to have either your neighborhood, school, workplace, or church in common with a credit union to become a member. Search www.findacreditunion.com to find one near you.
• Service features: Most large credit unions offer the same range of services as banks, including checking and savings accounts and consumer loans. Some credit unions only require a $25 deposit to open up a savings account.
• Deposit insurance: All federal credit unions, as well as most state credit unions, are regulated by The National Credit Union Administration, and credit unions are federally-insured through the National Credit Union Share Insurance Fund and have the same insurance limits as banks.

You can compare your local credit unions and banks at Bankrate.com/brm/safesound/ss_home.asp and at Bauerfinancial.com/btc_ratings.asp, where you can review a credit union’s financial health based on its capital ratio, loan delinquency, and liquidity numbers.

Popularity: 9% [?]

A recent report from the U.S. Commerce Department shows that recent changes in consumer spending and saving habits — a decline in household debt and a rise in household savings — may become the behavioral norm for American consumers. (more…)

Popularity: 4% [?]

Credit card holders have had some pretty big changes made to their accounts over the last few months, witnessing credit card issuers slash their credit limits, increase their interest rates, and even shut down their unused accounts as these companies aggressively try to minimize the risks posed by cash-strapped consumers.

But card holders have seen little effort by credit card companies to encourage consumer spending, until now. (more…)

Popularity: 8% [?]

During today’s challenging economic times you may be struggling to keep your head above water. And looking back on the financial mistakes you’ve made, you wonder if you’d be on better financial footing if your parents had done a better job teaching you about money. (more…)

Popularity: 5% [?]